4 ms·
"The German economy has hugely benefited from a cheap euro" - this is complete crap. It is the first time I hear that the euro is cheap. If the euro is so cheap
by reirob 16y ago
"The German economy has hugely benefited from a cheap euro" - this is complete crap. It is the first time I hear that the euro is cheap. If the euro is so cheap why it did not benefit to other countries? If the euro is so cheap why is France lobbying to devaluate it? If Germany benefited from cheap euro, how comes that Germany was always supporting the policy of the ECB to maintain a strong and stable euro.
Alone this quote makes this article to lose credibility. For me this article is pure propaganda.
- huherto 16y agoI interpreted it as "the euro is cheap for the Germans". But I am very ignorant about European economy.
- Someone 16y agoMixing in weaker coins with the mark to get the euro makes the euro weaker than the mark was. That helps German exports to non-euro countries. Within the euro, the link is even stronger. Before the Euro, there was an agreement to keep exchange rates more or less fixed, but the fixed rates would get adjusted when they grew too unrealistic. When that happened, the Italian lire, Greek drachme, Spanish peseta, etc. would get devalued, making German products more expensive for people in Italy, Spain, Greece, etc. That mechanism is gone now.
- neworbit 16y agoOne euro was worth about $1.60 in the middle of 2008. It's worth about $1.35 now. Was worth about $1.20 back this summer. And in mid 2001 it was worth about $0.85. Cheap is relative.